Parkdean Resorts suffers £100m slump as post-pandemic holiday competition heats up
The return of short-haul travel following the Covid-19 pandemic contributed to holiday park operator Parkdean Resorts’ pre-tax loss widening by almost £100m during its latest financial year.
The business, which is headquartered near Newcastle upon Tyne, has reported a loss of £135.2m for 2023, having previously posted a loss of £36.4m in 2022.
The last time Parkdean Resorts achieved a pre-tax profit was the £79.7m it booked in 2021.
Newly-filed accounts with Companies House have also revealed that its revenue fell from £534.4m to £507m during its latest year.
Parkdean said its holiday dales fell by 3.9 per cent “inline with the market in 2023” and added this was expected because of a lower UK staycation market following a return to pre-Covid levels of overseas short-haul travel.
The company is ultimately owned by Onex Corporation, the Canadian investment management firm founded by Gerry Schwartz in 1984.
A statement signed off by the board said: “As a business we faced a number of challenges in 2023, with double digit inflation, rising interest rates, low consumer confidence levels and geopolitical uncertainty.
“Notwithstanding these headwinds, yet again, our teams across the business have shown outstanding resilience in the face of some very difficult operational challenges whilst continuing to focus on our primary purpose which is to ensure we create amazing memories for our holiday guests and owners.”
On its future, Parkdean added: “The business is well placed, following years of investment in the estate, the brand and our people, to withstand the current challenging trading conditions, and actions taken towards the end of 2022 and 2023 to reduce our cost base and lock in pricing for key expenditure will assist in mitigating the impact of further inflationary pressures.”
‘Customer demand returns with a vengeance’
Steve Richards, chief executive of Parkdean Resorts, said: “2023 was a very challenging year for the sector and our business due to the combined impact of macro headwinds including high inflation, increased energy and labour costs, plus the impact of high interest rates on customers who wish to purchase big ticket items such as caravans and lodges as a holiday home.
“2024 trading has been encouraging and progress has been made. We’ve just completed the eight-week summer holiday peak period and I’m pleased to report online demand for our holiday parks was strong and we operated at full occupancy through the period, resulting in record revenues on park.
“A key part of our business is the sale of caravans and lodges as holiday homes on our parks, and we are pleased to see customer demand for these products return with a vengeance.
“Yet again this year, our teams across the business have shown outstanding focus on our purpose – creating memorable experiences for our holiday guests and holiday homeowners and it is great to see the business making progress on its customer and financial metrics.
“Our proposition is in great shape and looking ahead, we will continue to enhance our customer experience, both on park and online.
“At the time of writing, we are seeing strong online demand for 2025, and we look forward to 2025 with increasing optimism.
“We enjoy the full support of our shareholders, and Parkdean Resorts is well-placed to continue being a leader in the UK staycation market.”